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Cathie Wood's ARK Investment Management Sells $48 Million Worth of Roblox Shares

Key Points

- Cathie Wood's ARK Investment Management sold 1.1 million shares of Roblox Corp. - The sales were made on the New York Stock Exchange on Monday and Tuesday. - ARK Invest remains one of the largest holders of Roblox shares, with a stake worth over $500 million.

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Cathie Wood's ARK Investment Management sold $48 million worth of Roblox Corp. shares this week, reducing its stake in the popular online gaming platform. The sales were made on the New York Stock Exchange on Monday and Tuesday, according to a regulatory filing.

ARK Invest, known for its aggressive investment strategy and focus on disruptive innovation, remains one of the largest holders of Roblox shares. Even after the recent sales, the firm still owns over 5.5 million shares of Roblox, worth more than $500 million.

The sales come as Roblox's stock has been under pressure in recent months. The company's shares have fallen by more than 50% since their peak in November 2021. Roblox has been facing competition from other popular online gaming platforms, such as Fortnite and Minecraft.

Despite the recent decline in its stock price, Roblox remains a popular destination for gamers. The company reported having 55.1 million daily active users in the first quarter of 2022, up from 49.5 million in the previous quarter. Roblox has also been expanding its platform, adding new features and experiences to attract users, cater to their needs, and stay competitive.

It is important to note that ARK Invest's sale of Roblox shares does not necessarily indicate a lack of confidence in the company. ARK Invest is known for its active trading strategy and often makes adjustments to its portfolio based on market conditions.

In addition to Roblox, ARK Invest has also been selling shares of other high-profile companies in recent weeks, including Shopify, Palantir Technologies, Robinhood, and Roku, Inc. The firm has been rotating out of some of its growth stocks and into more defensive stocks, like utilities and consumer staples.